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HunnyDAO re-invent a technique used by the old central banks to peg its own LOVE token with a basket of decentralized assets (e.g: BUSD, BNB, HUNNY) which is stored in the HunnyDAO treasury.
A differentiating factor of HunnyDAO as compared to others is that HunnyDAO will introduce a secondary treasury that is backed by the profits of the Hunny ecosystem which includes HunnyPlay, HunnyPoker and others, since we have been around and our established products have been generating revenue, we are not only able to back HunnyDAO with assets received in the treasuries but we are also able to ensure longevity with the constant growth of Hunny’s entire ecosystem.
The 2 main strategies are staking and bonding. Stakers can stake their LOVE tokens in return for more LOVE tokens, while bonders provide their LP, BUSD and other tokens in exchange for LOVE at a discounted price after a fixed vesting period.
The main benefit for stakers comes from supply growth. HunnyDAO mints new LOVE tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.
The main benefit for bonders comes from price consistency. Bonders commit capital upfront and are promised a fixed ROI at a set point in time with varying price discounts; that return is in LOVE and thus the bonder's profit would depend on LOVE price when the bond matures. Bonders will benefit from a rising or static LOVE price.